MARKET EYE-India's SAIL falls; govt seen selling stake at discount

Reuters Staff

1 Min Read

* Shares in Steel Authority of India Ltd fall 3.9
percent on worries the government's planned stake sale will have
to happen at a discount to attract interest as there are
concerns about the company's earnings outlook.
* Citigroup last week downgraded SAIL to "sell", noting downside
risks to volumes, uncertainty on wages and its dependence on the
domestic market, where steel prices may not rise as much as in
global markets.
* The government is planning to sell a stake in SAIL and other
state-run companies including NTPC Ltd in February and
March.
* Dealers also speculate SAIL could post lower-than-expected
margins in the October-December quarter.
(abhishek.vishnoi@thomsonreuters.com /;
manoj.dharra@thomsonreuters.com)